# How to leverage your NFT

In Pawnfi Protocol, every user can easily collateralize his/ her NFT and borrow out P-Token without any liquidity limit. Loan amount is always set as 1,000 P-Token/ per NFT.

Please see [this doc](https://app.gitbook.com/s/kBj00aJACWfUcKT1T45t/getting-started/understanding-pawnfi/pawnfi-modules/p-token) for more information on P-Token.

### 1. Loan -> Leverage

<figure><img src="https://138288126-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FF2CRYJFHo6rjXoSRqSAS%2Fuploads%2FaYt1M2DGqbhK66GJOpN6%2Fimage.png?alt=media&#x26;token=3d0cd771-7b93-4a80-bd1d-91cdb6ed9e4c" alt=""><figcaption></figcaption></figure>

### 2. Select an NFT

<figure><img src="https://138288126-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FF2CRYJFHo6rjXoSRqSAS%2Fuploads%2FzP997EyPlkOl5qaZuHE8%2Fimage.png?alt=media&#x26;token=5c07361b-c61a-4be7-ac25-f8d7c5accce2" alt=""><figcaption></figcaption></figure>

### 3. Select Duration

<figure><img src="https://138288126-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FF2CRYJFHo6rjXoSRqSAS%2Fuploads%2FLP0kGQjS52sC0tE975vy%2Fimage.png?alt=media&#x26;token=e89059cd-f95b-42d6-a5a1-6b11b651a9d9" alt=""><figcaption></figcaption></figure>

* Duration: Loan period
* Grace period: It is an extra repayment period. NFT will be liquidated when grace period ends.

### 4. Confirm parameters -> Approve -> Submit transaction

<figure><img src="https://138288126-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FF2CRYJFHo6rjXoSRqSAS%2Fuploads%2FPfuXJMLyQ5LtTvMQMGlD%2Fimage.png?alt=media&#x26;token=6b03697c-5673-421e-9ea8-60a6bc5b0fb1" alt=""><figcaption></figcaption></figure>

Based on your loan duration and interest rate, withholding interest will be deducted from loan amount.

{% hint style="info" %}
Interest = 0.274 P-Token per day (10% APR)
{% endhint %}

After confirming all the information, click \[Approve] button to approve the transaction. After approval, click \[Submit] button to initiate transaction.

### 5. How to repay?

You can access to \[Dashboard] and find \[My Records] to review the loan status.

<figure><img src="https://138288126-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FF2CRYJFHo6rjXoSRqSAS%2Fuploads%2Fqpf4PUSSVKFd0274ZhJ0%2Fimage.png?alt=media&#x26;token=cca330d7-2be2-4f11-b8a3-deb05ee8914b" alt=""><figcaption></figcaption></figure>

<figure><img src="https://138288126-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FF2CRYJFHo6rjXoSRqSAS%2Fuploads%2FLcHNvLyQJBrY9Uk702CL%2Fimage.png?alt=media&#x26;token=3c7d64cd-dc3b-4f13-89ad-d0aa8eff1360" alt=""><figcaption></figcaption></figure>

In the detail page, you will be able to see all information of this order. Click \[Approve] to authorize repayment. After approval, click \[Repay] to initiate transaction. You can redeem your NFT after repaying your loan along with the interest accrued during the period.